You are studying with some classmates and one of them states the following: If a company is
Question:
You are studying with some classmates and one of them states the following:
“If a company is being sued, liabilities are never recorded because the outcome of the legal action is contingent or dependent upon the outcome of the case—that means the decision of a judge or jury.”
Required
Identify and explain the flaws in your classmate’s logic.
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Flaws The lawsuit creates a contingent liability ...View the full answer
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Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
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